AM Best has affirmed the Long-Term Issuer Credit Rating
(Long-Term ICR) of “a-” (Excellent) of W. R. Berkley Corporation
(W. R. Berkley) (Greenwich, CT) [NYSE: WRB] and all associated
Long-Term Issue Credit Ratings (Long-Term IRs) and indicative
Long-Term IRs for securities issued by W. R. Berkley. At the same
time, AM Best has affirmed the Financial Strength Rating (FSR) of
A+ (Superior) and the Long-Term ICRs of “aa-” (Superior) of Berkley
Insurance Company (BIC) (Wilmington, DE) and its reinsured
subsidiaries and affiliates, collectively referred to as the W. R.
Berkley Insurance Group (the Berkley Group). AM Best also has
affirmed the FSR of A+ (Superior) and the Long-Term ICR of “aa-”
(Superior) of Berkley Life and Health Insurance Company (Berkley
Life and Health) (Urbandale, IA). The outlook of these Credit
Ratings (ratings) is stable. (See below for a detailed list of the
companies and ratings).
Concurrently, AM Best has assigned an FSR of A+ (Superior) and a
Long-Term ICR of “aa-” (Superior) to W. R. Berkley’s newly
reinsured affiliates Intrepid Specialty Insurance Company and
Intrepid Casualty Company (both domiciled in Urbandale, IA). The
outlook assigned to these ratings is stable.
The ratings of the Berkley Group reflect its balance sheet
strength, which AM Best assesses as strongest, as well as its
strong operating performance, favorable business profile and
appropriate enterprise risk management (ERM).
Berkley Group’s balance sheet strength assessment is rooted by
its consistent strongest level of risk-adjusted capitalization, as
measured by Best’s Capital Adequacy Ratio (BCAR). The company has
demonstrated its ability to access capital markets when needed, and
has continued to be focused on creating enhanced permanency of
capital and lower cost of debt. Debt leverage is somewhat higher
than benchmark for similarly rated companies at 24.6%, adjusted.
The group’s interest coverage and liquidity metrics remain strong.
Berkley Group effectively maintains a diversified portfolio of
investments to support its liabilities, and is focused on creating
the most favorable return while maintaining its risk tolerance
The group continues to boast favorable market share in its core
lines of business, and its recognized presence in both domestic and
international markets is a nod to the diversity of its distribution
and operations. The group’s historically consistent operating
results and profitability metrics point to both nimble underwriting
and pricing discipline and effective risk management expertise.
Berkeley Group reported net premium growth of 18% in the first
quarter of 2022 with favorable net income benefiting from sizable
realized investment gains.
The ratings of Berkley Life and Health reflect its balance sheet
strength, which AM Best assesses as strongest, adequate operating
performance, neutral business profile and appropriate ERM, as well
as the financial and operational support of the parent company.
Berkley Life and Health’s balance sheet strength assessment is
supported by its risk-adjusted capitalization, assessed at the
strongest level, as measured by Best’s Capital Adequacy Ratio
(BCAR). Berkley Life and Health has shown incremental strengthening
of its risk-adjusted capitalization over the past five years, while
also maintaining a high-quality investment portfolio and favorable
Berkley Life and Health reported premium growth in 2021 mainly
due to higher sales in its group captive product line with
significant growth that is outpacing the stop-loss segment, which
is the company’s core product.
Berkley Life and Health enjoys a market niche in the small group
medical stop-loss space and is a market leader in the related
benefits group captive market. However, the medical stop-loss
market is highly competitive and is dominated by larger national
carriers. The company receives implicit and explicit support from
W. R. Berkley and is fully integrated into the parent
organization’s operations and strategic plans.
The FSR of A+ (Superior) and the Long-Term ICRs of “aa-”
(Superior) have been affirmed with a stable outlook for the
following members of the W. R. Berkley Insurance Group:
- Acadia Insurance Company
- Admiral Indemnity Company
- Admiral Insurance Company
- Berkley Casualty Company
- Berkley Assurance Company
- Berkley Insurance Company
- Berkley National Insurance Company
- Berkley Regional Insurance Company
- Berkley Specialty Insurance Company
- Carolina Casualty Insurance Company
- Clermont Insurance Company
- Continental Western Insurance Company
- Firemen’s Insurance Company of Washington, D.C.
- Gemini Insurance Company
- Great Divide Insurance Company
- Intrepid Insurance Company
- Key Risk Insurance Company
- Midwest Employers Casualty Company
- Nautilus Insurance Company
- Preferred Employers Insurance Company
- Queen’s Island Insurance Company, Ltd.
- Riverport Insurance Company
- StarNet Insurance Company
- Tri-State Insurance Company of Minnesota
- Union Insurance Company
- Union Standard Lloyds
- W. R. Berkley Europe AG
- Berkley International Seguros Mexico S.A.
- Berkley International Fianzas Mexico S.A.
The following Long-Term IRs have been affirmed with a stable
W. R. Berkley Corporation— -- “a-” (Excellent) on $250
million, 6.25% senior unsecured notes, due 2037 -- “a-” (Excellent)
on $350 million, 4.75% senior unsecured notes, due 2044 -- “a-”
(Excellent) on $470 million, 4.0% senior unsecured notes, due 2050
-- “a-” (Excellent) on $400 million, 3.55% senior unsecured notes,
due 2052 -- “a-” (Excellent) on $350 million, 3.15% senior
unsecured notes, due 2061 -- “bbb+” (Good) on $185 million, 5.7%
subordinated debentures, due 2058 -- “bbb+” (Good) on $300 million,
5.1% subordinated debentures, due 2059 -- “bbb+” (Good) on $250
million, 4.25% subordinated debentures, due 2060 -- “bbb+” (Good)
on $300 million, 4.125% subordinated debentures, due 2061
The following indicative Long-Term IRs under the shelf
registration have been affirmed with a stable outlook:
W. R. Berkley Corporation— -- “a-” (Excellent) on senior
unsecured debt -- “bbb+” (Good) on subordinated debt -- “bbb”
(Good) on preferred stock
W. R. Berkley Capital Trust III— -- “bbb” (Good) on
This press release relates to Credit Ratings that have been
published on AM Best’s website. For all rating information relating
to the release and pertinent disclosures, including details of the
office responsible for issuing each of the individual ratings
referenced in this release, please see AM Best’s Recent
Rating Activity web page. For additional information
regarding the use and limitations of Credit Rating opinions, please
view Guide to Best's Credit Ratings. For information
on the proper use of Best’s Credit Ratings, Best’s Performance
Assessments, Best’s Preliminary Credit Assessments and AM Best
press releases, please view Guide to Proper Use of Best’s
Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and
data analytics provider specializing in the insurance industry.
Headquartered in the United States, the company does business in
over 100 countries with regional offices in London, Amsterdam,
Dubai, Hong Kong, Singapore and Mexico City. For more information,
Copyright © 2022 by A.M. Best Rating
Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
version on businesswire.com: https://www.businesswire.com/news/home/20220608006087/en/
Kate Steffanelli Associate Director – P/C +1 908 439
2200, ext. 5063 email@example.com
Jeffrey Lane Senior Financial Analyst – L/H +1
908 439 2200, ext. 5567 firstname.lastname@example.org
Christopher Sharkey Manager, Public Relations
+1 908 439 2200, ext. 5159
Jeff Mango Managing Director, Strategy &
Communications +1 908 439 2200, ext. 5204
WR Berkley (NYSE:WRB)
Historical Stock Chart
From Oct 2022 to Nov 2022
WR Berkley (NYSE:WRB)
Historical Stock Chart
From Nov 2021 to Nov 2022